Stanley loses $3M in 2Q, plans to close warehouse
By Larry Thomas -- Furniture Today, July 20, 2009
STANLEYTOWN, Va. — Case goods major Stanley Furniture reported a second-quarter net loss of $3 million as sales slid 28.4%.
The loss, which equals 29 cents per share, compares with a net loss of $68,000 or 1 cent per share in last year's second quarter.
Stanley blamed the wider loss on plant inefficiencies, higher selling discounts and increased overhead due to lower production levels.
Sales for the quarter totaled $42.3 million, down from $59.1 million in the same quarter last year.
“Given the sequential improvement in sales in the second quarter compared to the first quarter of this year and a stable order rate for the past few months, we are seeing signs that sales levels may have reached a bottom,” said Albert Prillaman, chairman and CEO. “However, we see no indication of any sustained upturn.”
Sales for the first six months of the year tumbled 32.5% to $82.1 million.
The first-half loss totaled $5.4 million or 52 cents per share. That compares with net income of $980,000 or 9 cents per share in the first half of 2008.
Prillaman said Stanley expects to receive $6 million to $7 million during the fourth quarter from the antidumping case involving Chinese-made wood bedroom furniture.
Separately, Stanley announced it is closing a warehouse in Lexington, N.C., by the end of this year. Those operations will be shifted to other company-owned warehouses, primarily in Robbinsville, N.C., and the company will record accelerated depreciation of about $1.7 million during the next two quarters.
The 28 employees at the Lexington site will be eligible for positions in Robbinsville or Stanleytown.
Stanley Furniture
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Quarter ended 6/27 | 2009 | 2008 | Change |
| (a) Includes income tax benefit of $1.9 million in the 2009 quarter and $5.4 million in the 2009 six months, and income tax expense of $435,000 in the 2008 quarter and $794,000 in the 2008 six months. |
|||
| Sales | $42,326,000 | $59,148,000 | (28.4%) |
| Operating income | (4,078,000) | 979,000 | — |
| Net income | (3,023,000) | (68,000) | — |
| Earnings per share | (0.29) | (0.01) | — |
| 6 months ended 6/27 | 2009 | 2008 | Change |
| Sales | $82,090,000 | $121,682,000 | (32.5%) |
| Operating income | (7,153,000) | 3,029,000 | — |
| Net income | (5,399,000) | 980,000 | — |
| Earnings per share | (0.52) | 0.09 | — |
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Stanley posts $19.1M loss
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